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Realistbear

Debt Level Highest Since Records Began, Repos Up 70%

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http://www.ifaonline.co.uk/public/showPage.html?page=320308

Personal debt harder to get Wednesday

15th March 2006: 08:00

By Jonathan Boyd

Increasing bad debt provisions are forcing lenders to reassess lending rules and look to ensure acquisition strategies do not lead to bigger books of bad debt, says consultant Datamonitor.
It estimates average UK personal debt is up 20% overall since mid-2004.
Average unsecured debt per adult stands at £4,021, up 33.5% since 2001, leaving many consumers struggling.
The industry meanwhile is suffering from the increasing load that bad debt provisions incur, with Bank of England data suggesting unsecured debt write-offs jumped by 27.6% to £3.7bn in the first three quarters of 2005 compared with the same period one year earlier.

Seems that the A & L "poll" stating that debt is not a problem may be an exaggeration if unsecured debt is UP by 33.5% and bad debt is having to be written off at increasing levels--up 27.6% in just 3 Qs.

The Guardian, in giving glowing coverage to A & L's statement that debt is not a problme should have referred to what they wrote a few weeks ago:

http://money.guardian.co.uk/creditanddebt/...1701543,00.html

Bankruptcies and repossessions rise

Hilary Osborne and agencies

Friday February 3, 2006

Further evidence of Britons' struggle to repay their debts was provided today, as reports revealed personal insolvencies and mortgage repossessions both rose in 2005.
Government figures showed that the number of people becoming insolvent had soared to its highest level since records began during the final three months of 2005.
A total of 20,461 people in England and Wales became insolvent during the quarter, 15% more than during the previous three months - which at the time was the highest figure since records began in the 1960s.
During the period, 13,501 people went bankrupt, nearly 11% more than in the three months to the end of September and 57% higher than the figure for the same period of 2004, the Insolvency Service said.
At the same time, the number of people taking out individual voluntary arrangements (IVAs), under which they agree to repay a set amount each month in exchange for interest on their debts being frozen, more than doubled year on year to 6,960.
But figures from the Council of Mortgage Lenders (CML) showing a 70% leap in the number of repossessions last year suggest people are still struggling with over-indebtedness
.

Folks, we are being lied to by a lot of people. The VIs are getting desparate by telling the sheeple that debt is not a problem. The facts speak otherwise. Keep the faith and do not put your trust in VI propganda, even the venerable Wrigglesworth speaking on behalf of the A & L!

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Very interesting article

time to think about pulling money out of the banks and putting under the matress...I believe the debt problem is going to escalate and not simply continue up in a gentle manner or even diminish as some would predict. As people learn how easy it is to walk away from debts, many banks are going to be left in a dangerous position.

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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